CM suggests use of AI to check tax evasion

Vijayawada: Chief Minister N Chandrababu Naidu made it clear that all the revenue generating wings should strive hard for increasing state’s revenue and tax collections besides undertaking welfare and development programmes.

Besides finding additional sources of income, steps should be taken to find out the reasons where low income is reported and take necessary steps for income growth, the Chief Minister said during a review at the Secretariat with officials of revenue generating departments. The Chief Minister said the whole process, right from tax payments to issuing receipts and notices, should be done only online.

Pointing out that it was identified through AI that over 1,000 builders did not register themselves, the Chief Minister made it clear to the officials should give any kind of approvals only to those who have GST registrations.

He advised the officials to use AI for identifying the tax evaders and felt that the same process should be adopted by all revenue generating departments to ensure strict tax collection.

The traders should be informed that tax payments and getting permissions become easy by utilising technology, the Chief Minister said.

Making it clear that unlike the previous government the policy of the TDP-led NDA government is not to harass the traders, Chandrababu told the officials to ensure that all the due taxes are paid by maintaining close coordination with the traders.

He is very particular that the information of all departments, including taxpayers, GST portal, AT state Data Centre and the Andhra Pradesh Commercial Taxes Department (APCTD) are interlinked with AI.

The Chief Minister also felt that the official machinery can be further accelerated by using AI even for issuing notices to taxpayers and for receiving grievances. All the departments should strive hard to ensure that the state’s own revenue target of Rs 1,37,412 crore set for this financial year is reached by 100 per cent.

Pointing out that 2.2 per cent growth rate is recorded in the state’s own revenue in 2024-25 compared to 2023-24 fiscal, the Chief Minister said that while 4.1 per cent growth rate is reported in the tax revenue to the state government, the non-tax revenue, however, is not on the expected levels. In GST, 4.9 per cent growth rate is recorded, 15.2 per cent in professional taxes and in excise revenue 24.3 per cent is recorded, he added.

If the revenue generation is examined after announcing the new excise policy, the state revenue has improved better than earlier, Chandrababu said, adding that the revenue between October 2024 and March 2025 is Rs 4,330 crore, which is a 33 per cent growth in excise revenue. Similarly, in the municipal wing too an additional Rs 500 crore revenue is recorded in 2024-25 compared to 2023-24, he said.

Observing that Rs 2,500 crore tax dues are still pending, he said that majority of these dues are with regard to taxes on Central and state properties and levies on vacant lands.

The officials informed the Chief Minister that Rs 240 crore property taxes were collected in just six days after 50 per cent interest subsidy is announced in March.